Turned down for a loan? Blame your Facebook friends

KFOR.com

NEW YORK (CNN)- If you have been denied for a loan, you may have your Facebook friends to thank.

A handful of companies are now using social data to determine the risk of lending to people who have a difficult time accessing credit.

Traditional lenders rely on credit scores and steer clear of people without a credit history.

Click here for more information.

However, other lending companies say social connections could be the key to finding out a person’s creditworthiness.

Lenddo determines if you are friends on Facebook with someone who was late paying back a loan.

The company uses the data from your friends to determine who you tend to surround yourself with, meaning you may be more likely to be like them when it comes to paying bills on time.

However, some in the financial industry are skeptical about social data because it is not indicative of the…

View original post 6 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s